Hamas said it has arrested two militants suspected of killing an Italian last week, in a shootout in Gaza in which a third man killed himself.

Ihab Ghussein, a spokesman from the interior ministry, said police stormed a house after a fierce firefight.

One of the militants threw grenades at his two associates, and then shot himself.

Five police officers were injured as well as a girl who was caught in the crossfire.

The men are believed to have abducted and killed Vittorio Arrigoni last week. The 36-year-old's body was found on Friday, a day after he was kidnapped and after a video showing him beaten and blindfolded surfaced online.